95bFM Cuts to fees free could increase financial stress for students
20 May, 2026
Interviews by Castor Chacko, adapted by Chloe Porter
Finance Minister Nicola Willis has confirmed claims by NZ First leader Winston Peters that the government is planning to scrap the fees-free program in the upcoming budget. The policy had subsidised university students' course fees during their last year of study.
President of Te Aka Tauira, the Victoria University of Wellington Students' Association, Aidan Donohue, says the program has been influential for students in the decision to attend university. Amidst rising costs, he views fees-free as crucial relief from financial stress. In addition, it opens pathways to a future where education is viewed as more of a public good.
Now that the program is set to be cut, many students are feeling betrayed and less financially secure. Those who began studying in 2024, 2025, and 2026 were promised the support at the end of their degree, but are now set to miss out. Donohue believes the change is not only unfair, but will also undermine trust in the government's commitments going forward.
Donohue also questioned the logic behind the cut, especially given the government made changes to the policy earlier in its term.
“Why go through all the effort to change it to final years fees-free, which you say yourself is an incentive for students to come and finish studying. You've put millions of dollars into supporting IRD and to administering the project. And then a year after it's implemented, you scrap it. If that's not wasteful spending, I don't know what is.”
Since the reallocation of fees-free funding hasn't yet been announced, Donohue optimistically suggests a yearly grant of $4,000 to students who do not have to pay back. It's a change he won’t, however, “hold my breath for.”
National Secretary of the Tertiary Education Union, Amy Ross, also spoke to 95bFM’s The Wire about the change from an educator's perspective. “It [fees-free] represented a step forward in reducing student debt and the burden on students that we know undermines their ability to engage in education.”
Ross, notes the significant effects financial hardship has on students “It's hard to come to class prepared. If you’re thinking, this course I'm in is representing future debt.”
According to Ross, the government should be investing in in accessible, public, quality education. Currently, however, “this coalition seems not to have any aspiration for our country.” Instead of making improvements, this policy is consistent with the government's approach to “underinvest, undervalue, and ignore” education providers and students.
She says this problem stems from the government's tendency to treat the tertiary sector like a corporation. It is commonly talked about in economic terms, which limits our potential as a country. “We're never going to recognise that it's an investment in our whole world and our future. If we have quality, accessible public education, then we can thrive as a society.”
“We can solve our wicked problems. People can realise their full potential and have opportunities in this life. But we need a comprehensive policy solution of fully funding our tertiary sector and measuring it beyond economic productivity widgets.”
